Claiming expenses through PSC whilst working through Umbrella

[Lance]

As it happens the reply was off topic.

I maintain its entirely inappropriate to promote a narrative that if you flip from out to in IR35 you automatically become liable for the past periods. It depends on so many factors that would require professional review and any half witted client and agent would have put in checkpoints to address the issue on the new contract.

it's

[PK2]

Thing is it's about giving a level of information that the OP can take away and action properly. We have to spend sometime chatting about it as everyones situation and level of knowledge is different. Craig's post nails it really but it doesn't help the OP understand the complexities of it and won't stop them running off and doing the wrong thing by not understanding.

What you say is absolutely correct but the key that is easily missed is 'wholly, exclusive and necessary for the purpose of the trade'. Your standard contractor that doesn't understand what they do won't get this so we chat about it. Nothing wrong with that. Yes your laptop comment is correct. It's necessary to keep his trade going but while they are not trading many other items are pushing it a little so it's quite correct to point this out. A 2k dev laptop and a new iphone is pushing it for a standard bum on seat contractor and if it attracts the wrong attention it could be disallowed. So if you don't need it, hang off until you do is wise advice.

You can go buy your £100k but you've got to be able to prove this if investigated. If that's what you are doing then go for it. Most of us don't.

Much of what has been said is just a pragmatic view on the situation err'ing on the side of caution. We've had accountants suggest it's best not to unless absolutely meets the criteria. The OP's opening question inidcates he thinks it's OK to carry on buying stuff as he wants it. That's not strictly true so we are chewing the fat with him.

If he'd asked can he buy a standard laptop then he would have got a positive response. If he'd wanted to upgrade his Iphone11 to 12 as it's nice and new he might have got a completely different answer. We don't know so he's getting everything, hairs split and all.

Sometimes it's better to try educate the OP's on the whole situation so they can go and think about it than give them a black and white answer that isn't true in all situations.

Thanks for all the advice. Didn't realise it would spur so much discussion. It makes sense to only do some basic expensing if you absolutely need it for the business and wait till trading through the company for anything fancier, so I will behave myself.

I have a friend though who was planning to buy & expense a brand new MacBook in his final days of trading through his company in April!

[Lance]

Thanks for all the advice. Didn't realise it would spur so much discussion. It makes sense to only do some basic expensing if you absolutely need it for the business and wait till trading through the company for anything fancier, so I will behave myself.

I have a friend though who was planning to buy & expense a brand new MacBook in his final days of trading through his company in April!

If he's planning on closing the company what's he going to do with that asset?
It's legal and all, but not sure it could justify business use if he is about to cease trading entirely.
If the company is being retained then fine.